3 Sizzling Stocks for the Year-End Rally

The legendary end-of-the year rally is on its way. We’re entering a very favorable time for investors.

Best buy your stocks now or you might miss out on what could be another 5% to 10% in market returns.

Fretting about obstacles facing the market? At the top of the list could be the approaching end to Federal Reserve bond-buying. Many believe that the market will fall once this crutch is removed.

Or maybe you are concerned about the debt ceiling debate in Washington. The incessant back and forth will frighten any investor. This time real damage could be done.

Perhaps you have that nagging feeling that stocks have just gone too high. We are at the end of a long bullish cycle and valuations are at a peak.

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Keep the faith and zero in on mispriced stocks

If you think hard enough, you could find many other reasons not to be an investor in the market today. Resist the urge.

Instead, focus on opportunities. By that I mean owning stocks that are mispriced in the market. I’ve often seen these mispriced stocks jump 15% to 20% or more in a very short time period — and often in a market environment when such a jump is least expected.

I can identify these opportunities using something I like to call the P/E Gap — the difference between a stock’s price-to-earnings ratio and its expected profit growth rate. I use the P/E Gap as a way to rank the entire universe of stocks from top to bottom.

Own those stocks and you can put the wall of worry behind you.

On the following pages are 3 top-rated P/E Gap stocks to buy now, before the year-end market rally.